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DUBLIN CITY COUNCILLORS have tonight brought forward an emergency motion calling on the housing minister to reverse a decision that suspended the construction of nearly 250 social homes in the city.
The social housing developments were understood to be near shovel-ready and were to be delivered under a public private partnership (PPP) scheme across six sites. Almost 250 of them were located in Dublin.
Councillors from Sinn Féin, Fine Gael, the Green Party, the Labour Party and the Social Democrats put forward two emergency motions this evening, calling on minister Browne to reverse the decision and “immediately provide funding” to deliver the housing units.
Up to 68 homes were set to be delivered at the Ready Mix Site on East Wall Road. A total of 93 homes were earmarked for older people on the Shangan Road in Ballymun, and 83 homes were set to be delivered on Collins Avenue in Whitehall.
It is unclear when the homes will now be delivered, but the Housing Minister stressed in a statement to The Journal on Friday that the government aims to deliver them “as expeditiously as possible” through an “alternative procurement and delivery strategy”.
Sinn Féin councillor Daithí Doolin said the emergency motions were “hugely important”. He said that the council were told that last week that the units would go ahead, but the minister “put the brakes on it” within 48 hours.
“When it comes to housing, this government is in chaos,” Doolin told his colleagues.
Labour Councillor Darragh Moriarity told The Journal the decision to “pull the plug” on the projects will “choke off the supply of thousands of shovel-ready social homes”.
“This comes at the same time [that] Government is gutting rent pressure zones and making it more difficult for approved housing bodies to draw down funding,” he told The Journal.
“This all creates a perfect storm to drive more people into homelessness and block social housing delivery, which will allow for exits from homeless emergency accommodation.
“There is no clear indication whatsoever of any semblance of a plan on our deepening housing crisis by this Government and real people lives are hurt by this total mess,” he added.
Green Party Councillors Michael Pidgeon and Hazel Chu urged the council executive to seek clarity on the future of other housing developments in the city, and questioned if the capital’s social home targets are at risk as a result of the decision.
The decision is set to have significant ramifications, as the department confirmed that housing officials will now carry out a review of four upcoming PPP bundles – each earmarked to contain hundreds of homes.
Fine Gael’s councillor Danny Byrne said the announcement amounted to a “shocking intervention” from Browne.
“I really have fears now that these houses will stay idle if action is not taken,” Byrne said, pointing to similar projects with funding concerns which has also been paused in the city for up to a year so far.
A statement from Browne said his Department decided not to proceed with the contract award on a value for money basis. He said that his department and local authorities “remain fully committed to delivering social housing” through the planned development.
“These social homes are very much needed and remain a priority for Government, my Department and the relevant Local Authorities,” he said.
Fianna Fáil councillor Racheal Batten said this evening that while her party colleagues were “very disappointed” by the news, value for money in the delivery of housing is key. She claimed that the price of constructing the units would be 1.2 times the average cost.
“I have spoken to the minister this evening. He is very, very keen that these are not cancelled developments,” Batten said. “We are looking at other ways of doing these.”
Both motions of the support of the majority of councillors this evening.
Speaking to the councillors, Dublin City Council’s housing manager Mick Mulherne clarified that the costs involved with delivering the units were not only the price of construction.
He outlined that the overall costs involve the initial construction of the home and the operation and maintenance of the unit for at least 25 years – as well as any upgrades involved to renovate the property between tenants.
Mulherne also said there are currently nine sites, eight with full planning permission and one in the early stages of planning, which are currently in control of the council and may be at risk.
“What we’re doing now is thinking carefully about how we bring them forward in the best way,” he said, adding that the council and the department are in discussions with the state financial advisory group, the National Development Finance Agency, on the issue.
“We would hope that in a short period of time, we will have a preferred rout to identified for that. And we will, of course, brief councillors as soon as that is clear.”
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